- Financing Programs · SBA Loans
SBA financing — built for owner-users.
SBA 7(a) and 504 loans for owner-occupied real estate, business acquisition, and expansion.
SBA loans are the most attractive financing structure available to small business owners using commercial real estate in their own operations. Long terms, low down payments, and government-backed guarantees make SBA programs hard to beat for the right deal but only for the right deal. SBA isn’t fast, isn’t paperwork-light, and isn’t a fit for passive real estate investors.
TJA places both SBA 7(a) and SBA 504 financing through preferred lenders who can move efficiently within the program’s structure. The discovery call typically establishes which of the two programs fits your situation; both are explained in detail below.
7(a)
The Flexible Workhorse
The SBA 7(a) program is the broader of the two. It can finance owner-occupied real estate, business acquisitions, equipment, working capital, debt refinancing, and expansion sometimes within a single loan. Maximum loan size is $5M. The structure is a single loan from a single lender, with the SBA guaranteeing a portion of it.
504
The Real Estate & Equipment Specialist
The SBA 504 program is designed specifically for fixed-asset financing owner-occupied real estate and major equipment. Total project size can exceed $10M. The structure is a partnership: a conventional first-lien lender takes 50%, an SBA-backed CDC takes 40%, and the borrower brings 10% down (15% for special-use or new businesses). The 504 portion offers below-market fixed rates over long terms.
- Best Fit For
SBA financing is a fit if:
- You operate the business that occupies (or will occupy) the property
- Your business will occupy at least 51% of the property (existing) or 60% (new construction)
- You're acquiring, refinancing, or constructing owner-occupied commercial real estate
- You're acquiring an existing business with or without real estate
- You can accommodate a 60–90 day closing timeline
- Your business meets SBA size standards (most do; we'll confirm)
SBA 7(a) Program Parameters
| Parameter | Typical Range | Notes |
|---|---|---|
| Maximum Loan | $5,000,000 | Single SBA-guaranteed loan |
| Use of Proceeds | Real estate, acquisition, equipment, working capital, refinance | Most flexible SBA program |
| Down Payment | 10–25% typical | Lower than conventional commercial in most cases |
| Term Length | Up to 25 years for real estate | 10 years for non-real-estate uses |
| Rate | Variable, tied to Prime + spread | Fixed-rate options available |
| Owner Occupancy | 51% existing / 60% new construction | Hard requirement |
| Personal Guarantee | Required from 20%+ owners | Standard SBA requirement |
| Prepayment | Sliding scale on real estate, no penalty after 3 years | More flexible than 504 |
SBA 504 Program Parameters
| Parameter | Typical Range | Notes |
|---|---|---|
| Maximum SBA Portion | $5,500,000 | Total project size can exceed $10M+ |
| Project Structure | 50% bank + 40% SBA/CDC + 10% borrower | 15% borrower for special-use or new business |
| Use of Proceeds | Owner-occupied real estate and major equipment only | More restrictive than 7(a) |
| Down Payment | 10% standard / 15% special cases | Lowest down payment in commercial finance |
| Term Length | 10, 20, or 25 years on SBA portion | Bank portion typically 5, 7, or 10 years |
| Rate | Fixed below-market on SBA portion | Among the most attractive structures available |
| Owner Occupancy | 51% existing / 60% new construction | Hard requirement |
| Prepayment | Declining schedule on SBA portion | Less flexible than 7(a) |
SBA program parameters are set by the U.S. Small Business Administration and are subject to change. Specific terms depend on lender execution, borrower profile, and project characteristics. All rates and fees are subject to change.
- Process Snapshot
01
Eligibility & Strategy
We confirm SBA eligibility, evaluate whether 7(a) or 504 fits better, and outline indicative terms.
02
Lender Selection
We identify the right preferred lender for your specific deal. Lender selection matters more on SBA than on conventional speed and underwriting standards vary widely.
03
Application & Underwriting
Full SBA documentation package, submission, and underwriting management. Most SBA underwriting takes 30–60 days from a complete file.
04
Closing
SBA closings involve more parties than conventional lender, SBA, CDC (for 504), title, and counsel. We coordinate the full process to funding.
- FaQs
Frequently Asked Questions
Should I use 7(a) or 504?
It depends on the deal. SBA 504 typically offers a better rate on the SBA portion and a lower total cost of capital for owner-occupied real estate above $1M, but it requires a more rigid structure. SBA 7(a) is more flexible and works well for smaller real estate deals or when working capital is also needed. We’ll evaluate both on every eligible deal.
How long does an SBA loan take to close?
Plan for 60–90 days from term sheet to funding. SBA underwriting itself typically runs 30–60 days; appraisal, environmental, and closing add the rest. SBA isn’t fast but for the right deal, the structure is worth the wait.
Can I use SBA financing for an investment property?
No. Both SBA 7(a) and 504 require owner-occupancy. The business that uses the property must occupy at least 51% of it (60% for new construction). Pure investment real estate doesn’t qualify see Commercial Mortgages or Stated & Light-Doc Programs for those deals.
What's the maximum SBA loan I can get?
SBA 7(a) caps at $5M total. SBA 504 caps at $5.5M on the SBA portion, but total project size (bank + SBA + borrower) can exceed $10M. For projects above those caps, conventional commercial financing is usually the better path.
Does SBA require personal guarantees?
Yes. SBA requires personal guarantees from any owner with 20% or more equity in the business. This is non-negotiable under SBA program rules.
Can I refinance existing debt with an SBA loan?
Yes, with conditions. SBA 7(a) can refinance qualifying business debt under certain circumstances; SBA 504 can refinance existing real estate debt under the 504 Refinance program.
Each has specific qualifying criteria we’ll evaluate eligibility during the discovery call.
What's the down payment really?
SBA 504 is famously 10% down, but that’s for stabilized businesses with stabilized properties. New businesses or special-use properties (hotels, gas stations, religious facilities, etc.) typically require 15% or 20%. SBA 7(a) typically requires 10–25% depending on lender and use of proceeds
Considering an SBA loan?
Tell us about the property and your business. We’ll tell you whether SBA fits and which lender will move fastest.